Cryptocurrencies are very volatile and this, in fact, is the reason why their adaptability into the mainstream economy is taking long. Governments and financial institutions would rather choose to stay away from the digital assets in order to avoid the volatility. Most cryptocurrencies cannot be used as a store of value. Mainly because there is a high chance the value won’t remain fairly constant. Salaries received in the form of cryptocurrencies could go down in value by the time the individuals are spending the money to buy goods and services.
Therefore, Ethereum ETH co-founder, Vitalik Buterin has for a long time recognized the need for virtual currencies to achieve mass adoption into the mainstream economy and industries. This can only be achieved by having stability, a feature that does not exist in most of the current cryptocurrencies like BTC, ETH and BCH among others. Individuals would love to get their salaries and store them without the fear of the funds dropping in value by 57% at the time of spending.
Vitali said in an official blog post, “Unfortunately, we’ve found that the existing stablecoins all have various flaws; Tether is unauditable, Nubits has already once collapsed in price, Seignorage Shares is after three years still just a whitepaper and MakerDAO is an inadequate joke because…. reasons. As a result, we’ve decided to take matters into our own hands, and issue our own officially branded stablecoin, and use this as an opportunity to make another ICO.”
This situation has prompted Ethereum ETH to develop and launch the World Trade Francs (WTF) which is a decentralized 4.0 stablecoin that is solely based on the next-generation blockchain technology. The stablecoin particularly is tailored to develop a free trade as well as an economic interaction system that will integrate the next-generation blockchain alongside the hypercube tangle technology. The users will have the freedom to hold, sell or buy stable tokens.
Consequently, the CEO adds that
“The app partners of WTF protocol include Peiwo, Obike, Gifto, Uplive, with a total of 4 million users, making WTF a blockchain protocol with the most DAPP users in the world. He reckons that the World Trade Francs give the power back to the people, free from political oppression and provide the framework for personal self-sovereignty coupled with global free trade all under a “permissionless global network, and a World Decentral Bank, which will be able to implement Perfect Monetary Policy that can allow the world to live together in harmony, all without any central points of censorship or control.”
WTF will adopt the benefits of both capitalism and socialism avoiding the downside of the two. The users will trade WTF stablecoin with FTW coin; a corresponding volatile coin that will represent a value of something economically equivalent to the revenue from the WTF, besides it will be a utility token.
Ethereum ETH is working hard to ensure that the decentralized economy is accessible to everyone. The economy should be able to give people the chance to freely buy, sell and hold stable coins. This will give individuals an alternative to the centralized services without worrying about volatility. The stablecoin will be governed by smart contracts executed in a transparent manner that will empower the user at the same time transform the economy.